Carbonite produced about $27.35 million Ebitda on $202.7 million in revenue for the six months ended June 30, according to Carbonite’s second-quarter earnings statement. The company also reported a net loss of $9.3 million for the same time period.

Bids are expected to come in at $19 to $20 a share, or a 20 percent to 30 percent premium to Carbonite’s volume-weighted average stock price of $15.68 a share, which measures the moving stock price and trading activity since July 2019, one source (of five) said.

Carbonite expects bids to come in at $20 a share minimum. Bidders, however, will likely offer $19 at the highest, another source said. At $19 a share, Carbonite would be valued north of $1.1 billion, including debt.

In March, Carbonite acquired Webroot, a cybersecurity provider for managed service providers and small businesses, for $618.5 million in cash. For that deal, Carbonite secured a $550 million term loan with a floating rate based on LIBOR plus 3.75 percent, according to the company’s announcement at the time.

Carbonite’s leverage quadrupled with the deal. Long-term debt stood at $598.3 million as of June 30, up from $118.3 million on Dec. 31, 2018.

The Webroot acquisition was aimed to create synergies between two companies serving similar clients, two sources said. However, Carbonite’s second-quarter earnings missed analysts’ revenue expectations and the companies have not outlined their integration plan yet, the people said.

Shortly after the earnings report, Carbonite’s CEO Mohamad Ali stepped down from the company, which then started to explore alternatives, the sources said.

Carbonite, which comprises a consumer-focused business and a corporate-focused business, is also facing headwinds from larger competitors, one of the sources said. Its consumer business, which provides disaster data recovery, is suffering from the proliferation of data recovery providers like AppleiCloud and GoogleCloud, the person said.

The company’s stock was trading at $18.25 at market close on Thursday, up 1.45 percent from Wednesday.